From Forbes, Richard Reibstein writes about the focus on identifying workers misclassified as independent contractors. He discusses the Department of Labor’s Misclassification Initiative website and identified industries that are the focus of government officials including janitorial services, construction, nursing, staffing, transportation, cable companies, catering services, landscaping and car services/limousines. He also discusses the risks of class action lawsuits. He writes:
Class Actions are Biggest Concern
But enforcement actions by government regulators are not nearly as worrisome to companies using independent contractors as class action lawsuits by workers alleging that they have been misclassified. Thousands of these legal challenges have been filed by individuals being paid on a Form 1099 basis who seek allegedly unpaid overtime, minimum wage, employee benefits and work expenses.
Misclassification class actions have been brought against companies in various business sectors, but some industries have been the focus of plaintiffs’ class action lawyers. These include technology; transportation, courier services and logistics; adult entertainment; cleaning/janitorial services; staffing; car rental; communications; financial services; insurance; car service; media; publishing; security; fashion; pharmaceutical; cable installation; cosmetics; energy; sports; national defense; and delivery of home products and commercial goods.
Read the full story at Is Your Company On The Independent Contractor Hit List?.